The United Progressive Party (UPP) expresses its disgust with the Gaston Browne Administration for its autocratic imposition of a 2 percent increase on the Antigua and Barbuda Sales Tax (ABST) and its failure to consult with the people, despite an assurance given by Government spokesman Lionel “Max” Hurst a week ago.
The Administration is making an attempt to pacify the public with its references to the zero-rated basket of food items. At the same time, it is downplaying the fact that all other consumer goods and services are subject to the ABST, and the increase in the sales tax will necessarily drive up the cost of living.
On a high-ticket – but not luxury – item, such as a refrigerator costing $5,000, that 2 percent increase will mean an additional $100 paid in ABST. On building materials valued at $100,000, the tax increases by $2,000. The cost of legal, medical and other services will be similarly affected, as will the importation of goods at the Port.
Without shame, the Antigua Labour Party Government is now attempting to stifle dissent by dangling the carrot of a 9 percent salary increase before public-sector workers.
That is unacceptable, since it has collected more revenues in its two-plus terms in office than any other administration – although with less to show for it than any previous administration, as well.
In fact, with significantly lower collections, the UPP Government, in its first term, increased salaries by a minimum of 17 percent. This is in stark comparison to the Browne Administration’s financial mismanagement.
This year alone, the Government gave away more than $300 million in tax concessions. And yet, the Customs Department just announced its record-breaking collection of $327 million in the first 10 months of 2023 – without employing an aggressive and efficient tax-collection mechanism.
How, then, does the Gaston Browne Administration reconcile this boast with the 2 percent increase in the sales tax?
The hardship that will be inflicted on the poor – already insulted with an 80 cents-per-hour increase in the minimum wage – and on the shrinking middle class – with further tax increases expected – must be resisted by all persons
with a conscience.
Accordingly, the UPP will be consulting with the trade unions and employer organizations, as well as the church and other civil-society groups, on crafting a unified resistance to this unconscionable increase.
And when a protest action is called, the UPP encourages all public and private-sector workers, consumers, and organizations to let their opposition to this increase be heard and felt.